These High-Yield Sectors Are Still Cheap

The market has rallied off its October lows and the S&P 500 is up 4.18% in less than 30 days.

This is good for the stocks you already own.

But big rallies can be frustrating if you’re looking to add new positions. Which is why today’s article covers three investment sectors with cheap price to earnings ratios and high dividend yields.

1. Utilities

Two weeks ago, there was an electrical fire in my apartment complex and I was without power for three whole days. If you’ve never gone a day or two without electricity, you don’t realize how much time is lost simply because it’s dark outside.

Once the sun went down, there was no more reading or writing.

And I had to rely on my phone’s flashlight to do simple tasks like brushing my teeth.

I bring this up, because utility stocks are viewed as boring, low-growth investments. Yet, electricity and running water are crucial components of our modern infrastructure.

Utility stocks have taken a serious beating this year, with investors cycling out of the sector and into high-yield bonds and treasury bills.

This has left many high-quality utility stocks at or near their 52-week lows, even after the recent market rally.